Shell And Esso Drop Fuel Prices

Wed, Aug 20th 2008, 12:00 AM

Relief for motorists from the skyrocketing prices at the pumps came earlier this week when gasoline dipped by more than 37 cents at two service stations on New Providence.

After months of gas price hikes, Esso customers were elated when word got around that the price of gasoline had dropped by 46 cents, from a high of $5.83.

The price of gasoline per gallon now stands at $5.37 at Esso, which was the cheapest of the three oil companies up to press time yesterday.

Shell gasoline dropped from $5.77 per gallon to $5.40, some 37 cents cheaper than what motorists were paying several weeks ago.

Texaco gasoline per gallon remained the most expensive at $5.91, up to press time.

"I was praying to God for some relief to come and come quickly. I was wondering how I was going to make it because school is about to open and I would have to make more runs," Shenicka Moxey said.

The mother of three explained that while her two younger children will be attending schools in the Carmichael Road area, her eldest daughter will be attending St. Augustine's College in September.

"That means I will be using more gas and things are already tight with food prices being what they are today," Moxey said. "This could not come at a better time."

The price of gasoline depends on when the shipment is purchased. The cost of a gallon of gas is calculated based on the international per barrel price of oil at the time local distributors receive a shipment.

The dip in gasoline prices at both Esso and Shell service stations came as oil prices on the international scene plunged to near $112 a barrel Tuesday, extending an overnight decline as Tropical Storm Fay avoided wells and other oil installations in the Gulf of Mexico.

According to international reports, the contract fell 90 cents Monday to settle at $112.87 a barrel after the threat of Tropical Storm Fay eased. This was the first time crude ended below $113 since May 1. The price of oil has dropped some 24 percent from a record high of $147 .

The price of a barrel of oil is highly dependent on both its grade, determined by factors such as its specific gravity, sulphur content and its location.

Before the drop, local analysts were predicting that the price of gasoline in the country could have hit the $8 mark before prices started to drop.

"It's been long in coming and it is welcomed relief," said Shell customer Eugene Duncanson.

He admitted that on several occasions he parked his vehicle, a Ford Explorer, and made use of the public transportation system.

"I was paying close to $100 for a full-up and that was too taxing," he said. "I had to make use of the bus system."

By KEVA LIGHTBOURNE

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